Earlier this month i received a long expected share of some family inheritance, with the final amount being larger than originally expected. This was all in cash.
Although i've made a number of investments in the past 2 weeks, the recent cash inflows have seen my cash balances increase to around 36% of total assets, well in excess of my 20% target.
Whilst i will try to manage this balance down, i'm not going to rush it. I'm managing to average about a 2% return on my cash in the meantime and more than half of it is available at short notice for investment opportunities or emergencies.
A key point to consider is that if i do nothing, this balance will continue to rise with a positive savings rate each month, potentially drifting up to 40% later in the year. At these levels, larger investments such as property become a much more viable option.